The revised Real Property Gains Tax (RPGT) rates that took effect from Jan 1, 2019, may lead to quicker disposals upon the fifth year of holding period as there would be no motivation for longer term investment, said a tax expert.
“Sustainability is the core of our property market and the previous RPGT rates have demonstrated its effectiveness to curb speculation activities in the property sector. However, the new RPGT of 5% (from nil previously) on the gains from the disposal of properties for which the holding period exceeds five years for Malaysian individuals will discourage long-term investment,” said the Associated Chinese Chambers of Commerce & Industry of Malaysia (ACCCIM) head of taxation committee Koong Lin Loong.
He noted that there were also concerns over the “non-expiry” of the RPGT in terms of the holding period between the date of acquisition and the date of disposal.
Media Title: The Malaysian Reserve
Date: 11 Jan 2019